Monday, November 5, 2012

Retail investors remain in the sidelines

* Stock Market Review for the week ending 02nd November 2012:

During the last week in October tapering into November, the ASPI lost 18 points while the Milanka lost 11 points. The daily average turnover was Rs 557 million compared to the previous week’s Rs. 421 million. However on the brighter side foreign inflows keep continuing with a net foreign inflow of Rs. 773 million being recorded for this week. Local and foreign buying interest in top blue-chips continued in counters such as John Keells Holdings and Chevron throughout the week. Overall a subdued market on the retail front was witnessed as retail investors remaining in the sidelines throughout the week.

The market opened for the week on Tuesday following a shortened trading week. Trading began on a positive note however, lost momentum and closed in the negative with the ASPI and Milanka losing 30 and 41 points to close at 5,520 and 5,041 respectively. A turnover of Rs. 307 million was recorded with institutional and high net worth interest in blue chips continuing. Chevron was the top contributor followed by Tokyo Cement, John Keells Holdings and Balangoda. Retailer interest was witnessed in Environment Resource Investments. The share price of Chevron rose by Rs. 0.80 to close at Rs. 200.90 while Tokyo cement closed flat at Rs. 28.70. John Keells Holdings lost Rs. 1.80 to close at Rs. 206.30 while Balangoda appreciated by Rs. 1.50 to close at Rs. 39.00. A net foreign inflow of Rs. 12 million was recorded.

On the last trading day for the month of October, the market closed in the negative marginally with the ASPI losing 7 points and the Milanka losing 4 points to close at 5,513 and 5,037 respectively. A slight improvement in turnover of Rs. 477 million was recorded partly due to foreign interest in John Keells Holdings with several blocks changing hands amounting to almost half the day’s turnover. Foreign interest in Chevron continued as well with a block changing hands at Rs. 200.00, contributing a total of Rs. 52 million.

The share price of John Keells Holdings closed at Rs. 205.20, dropping by Rs. 1.60 while Chevron too dropped by Rs. 0.90 to close at Rs. 200.00. Lanka IOC was the other top contributor with Rs 46 million. The counter gained by Rs. 0.30 to close at Rs. 17.80. A net foreign inflow of Rs. 168 million was witnessed.

Trading on the first day in November took a rather murky start with both the indices closing in the red. The ASPI lost 19 points and the Milanka lost 21 points to close at 5,494 and 5,016. An ins8ignificant turnover of Rs. 138 million was recorded which is the lowest recorded figure since 9th July. John Keells Holdings was the highest contributor generating Rs 14 million followed by Lanka IOC with Rs. 9 million, and Asian Hotels and CT Holdings both contributing almost Rs. 7 million apiece. The share price of John Keells Holdings gained Rs. 2.70 to close at Rs. 207.90 while Lanka IOC closed flat at Rs. 17.50. Asian Hotels gained Rs. 3.50 to close at Rs. 81.00 while CT Holdings lost Rs. 0.10 to close at Rs. 130.30. A net foreign inflow of Rs. 13 million was witnessed during the day.

On Friday the market witnessed a turnaround allowing investors a sigh of relief with the ASPI and Milanka gaining 37 and 55 points to end the week at 5,532 and 5,071 respectively. Compared to recent trading days it was a relatively busy day on the trading floor as the daily turnover recorded Rs. 1.3 billion recording the highest turnover since 15th October. Turnover was driven by foreign buying amounting to Rs. 1.16 billion. John Keells Holdings was the top contributor for the 3rd straight session amounting to a near 45% of the day’s turnover. Notable interest in Environmental Resource Investments was witnessed as approximately 23 million shares was traded on each of the voting, warrant 6 and warrant 3 counters. The share price of John Keells Holdings increased by Rs. 5.50 to close at Rs. 212.00. A net foreign inflow of Rs. 583 million was recorded during the day.

(Courtesy: Innovest Investments (Pvt) Ltd – an Investment Management Company licensed by the Securities & Exchange Commission of Sri Lanka)

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